1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vesna_86 [32]
2 years ago
9

The current price of the futures contract is $30. A six-month call option on the futures contract with a strike price of $30 is

trading at a price of $4. What is the price of a six-month put option on this futures contract with the same strike price?
Business
1 answer:
babymother [125]2 years ago
7 0

Answer:

Put Price = $4

Explanation:

We are applying Put Call Parity Theorem. Future Price + Put Price = Call Price + Strike Price

$30 + Put Price = $4 + $30

Put Price = $4 + $30 - $30

Put Price = $4

Thus, the price of six month put option = $4

You might be interested in
Graphic imageA graph titled 'Changes in Employment, by Industry' is shown. Beneath the graph, the source is identified as the St
marissa [1.9K]
Since 1986, it has increased every decade. The points in 1986 were between 60 and 90 million employees. It increased to over 90 million 10 years later, in 2006, and it reached up to 90 and 120 million employees.
7 0
3 years ago
The Cash account of Gate City Security Systems reported a balance of $2,530 at December 31​, 2018. There were outstanding checks
Soloha48 [4]

Answer:

Gate City Security Systems

Bank Reconciliation at December 31, 2018

Book:  

Balance , December 31, 2018  $2,530

<em>Add: </em>

Collection from Jane Lindsey $500  

Interest revenue $10

<em>Less:</em>

Service charges  $20

Adjusted book balance December 31, 2018  <u>$3,020</u>

Bank:

Balance , December 31,2018  $3,120

<em>Add:</em>

Deposit in transit  $400

<em>Less:</em>

Outstanding cheque  $500

Adjusted bank balance December 31, 2018  <u>$3,020 </u>

3 0
3 years ago
Assume that during 2020, Cypress Semiconductor Corporation reported net cash provided by operating activities of $155,985,000, n
ANTONII [103]

Answer:

$19,525,000

Explanation:

Calculation to determine the free cash flow

Using this formula

Free cash flow=Net cash provided by operating activities-cash spent for plant assets-Dividends

Let plug in the formula

Free cash flow=$155,985,000-$132,295,000-$4,165,000

Free cash flow=$19,525,000

Therefore The Free cash flow is $19,525,000

6 0
3 years ago
Rappaport Corp.'s sales last year were $385,000, and its net income after taxes was $23,000. What was its profit margin on sales
Marianna [84]

Answer:

5.97%

Explanation:

Profit margin is an example of profitability ratio

profitability ratio  measures the ability of a firm to generate profit from its assets

Profit margin = net income / sales

= $23,000. / $385,000,

5 0
3 years ago
What is an appropriate response when an interviewer asks what salary you are looking for
Angelina_Jolie [31]
Thank you I will gladly take the offer
4 0
3 years ago
Other questions:
  • Nabisco used a free-standing rack in the shape of a bus to promote its Ritz and other cracker products. The goal of the sales pr
    10·1 answer
  • Which of the examples provides the best evidence that inflation has occurred? A person whose salary has decreased is able to pur
    11·1 answer
  • Zachary Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the compan
    13·2 answers
  • In the short run, increasing marginal costs always imply increasing average total costs. a. Trueb. False
    6·1 answer
  • Rivalry-related competitive pressures are being intensified by the efforts of rivals to expand their product lines and offer wid
    8·1 answer
  • Why, in summary, should managers think of staffing, training, appraising, and paying employees as a talent management process?
    6·1 answer
  • If the contribution margin is not sufficient to cover fixed expenses: a. total profit equals total expenses. b. a net operating
    10·1 answer
  • when calculating net price, why do you think loans are not deducted from sticker price even if they are typically offered to you
    9·1 answer
  • What is the best thing to say when somebody knocks on the bathroom door
    9·1 answer
  • Roles of organizational structure in an organization
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!